Question

Wine Price Study Data

USA Remulak 1 18.20 18.50 2 16.20 14.00 3 17.20 18.20 4 18.70 21.10 5 18.40 13.90 6 16.60 18.70 7 14.90 14.90 8 16.80 16.40 9 12.10 16.30 10 10.80 18.00 11 18.50 16.80 12 15.50 19.80 13 16.20 17.30 14 16.30 16.60 15 18.20 14.90 16 19.50 16.30 17 13.20 16.50 18 16.80 15.40 19 12.90 17.60 20 17.20 20.10 21 18.20 16.40 22 16.30 18.00 23 16.80 17.50 24 16.40 18.40 25 18.60 19.80 26 15.60 14.80 27 17.10 18.20 28 18.10 16.70 29 18.90 20.20 30 19.00 16.20 31 17.30 20.40 32 18.80 17.90 33 14.90 15.50 34 16.70 15.40 35 20.30 17.70 36 17.10 17.10 37 14.60 17.90 38 17.20 17.40 39 13.00 18.20 40 18.40 16.20 41 16.90 18.50 42 13.30 16.90 43 16.30 17.60 44 15.90 14.40 45 16.60 21.60 46 17.60 18.60 47 16.00 16.20 48 17.10 14.30 49 14.60 12.50 50 18.00 20.00

You area an statistician tasked with the challenge of proving that the nation of Remulak is selling its wine in the United States at a price below that which is charged domestically in Remulak. The issue is that the Remulak government is coordinating predatory pricing by subsidizing a lower price charged in the US in order to stimulate export demand for their most prolific product. The data available has been collected from random samples of single bottles of Remulak wine sold in both the United States and in Remulak. Currency exchange experts have adjusted the price charged in Remulak to US Dollars reflecting both the exchange rate differences and differences in real prices between the two nations. You should prepare confidence intervals of the difference of the two pricing levels at both the 95% and 99 % confidence levels. Further, you should conduct an appropriate hypothesis test for a difference in price of $1.70 per bottle lower in the US, which agricultural economists have determined is the minimum difference required to significantly induce increases in US demand for Remulak wine. Please include your math calculations.

Answer 1

As entering the data in Excel sheet ;

• Click on data tab
• Click on data anlaysis
• Selecting 2 sample T test with unequal variances
• Click ok

The following window appears on screen-

By

Entering the data of remulak as variable 1 and data of USA as variable 2

make the hypothsized mean difference equal to 1.7

Click ok , to get the output

Output as:-

The P value for one tailed is 0.0043 < alpha 0.05 , thus we conclude that the USA is 1.7 less than Remulak